Energy efficiency: low-cost, high impact solutions for climate transition

Energy efficiency solutions offer resilient investment opportunities, generating cost savings, enhanced operational efficiencies, and improved financial performance despite changing regulations.

Energy efficiency solutions provide highly resilient investment opportunities despite shifting policy landscapes. Regardless of regulatory changes, these solutions continue to generate cost savings, enhance operational efficiencies, and improve financial performance for businesses and consumers.

Nuveen’s Private Equity Impact platform is uniquely positioned to invest in energy efficiency, leveraging deep sector expertise across real assets, a strong track record of investing in the energy efficiency space, and a focus on supporting strategic growth and value creation.

Key themes:

• Resilience: in an uncertain political environment, companies that drive energy efficiency present a resilient sector for investment due to their ability to drive cost savings while also reducing greenhouse gas emissions.
• Low capital intensity: behavioral adjustments and smart technologies can optimize energy consumption and reduce costs without the need for major infrastructure investments or overhauls.
• New innovations: innovations such as Energy-as-a-Service, AI-driven energy management, and advanced building materials are driving new opportunities for energy efficiency improvements.
• Rapid impact: unlike supply-side renewable energy projects, demand-side energy efficiency improvements require lower investment and provide rapid financial and environmental benefits.
• High scalability: solutions such as smart thermostats, LED lighting, and advanced HVAC systems are easily scalable across different industries and geographies.
• Disinflationary impact: as businesses spend less on energy, they face lower operating expenses. This can limit the need to raise prices on goods and services, helping to contain inflationary pressures.

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